Protecting Consumers

1. Protecting Consumers Chapter 24

2. What can you do when you have a problem with a product?

3. Take it back to the store for a full refund • Call customer service • Tell others of your problem • File a complaint with the Better Business Bureau • Take the company or small business owner to small claims court

4. Getting a Refund Check out a store’s refund policy before purchasing an item Not all refund policies are the same

5. Example: Target Stores Full refund for most items returned within 90 days in new condition with the original receipt

6. Other Exceptions • Any purchase made by check may be refunded as a merchandise voucher. • Other restrictions may apply.

7. Smaller stores might have a stricter return policy Look for their return policy either on the receipt or posted in the store.

8. Call Customer Service • If you can no longer take an item back to the store, do not hesitate to call customer service if there is a problem with the product. • If it is a reputable company, they will do what they can to rectify the situation

9. File a Complaint with the Better Business Bureau A nonprofit organization that collectsinformation on local business and handles complaints. The Better Business Bureau does not make recommendations. www.chicago.bbb.org

10. Take a Company or Business Owner to Small Claims Court • Small claims court settles cases involving relatively small amounts of money • You do not need a lawyer • Size of claim – as little as $25 and as high as $5,000 • Examples of Small claims court • Judge Judy • Judge Mathis

11. Consumer Advocates Groups or individuals that work to protect, inform, and defend consumers • Consumer Federation of America • www.consumerfed.org • National Consumers League • www.nclnet.org • Consumer’s Union • Non-profit publisher of Consumer Reports • www.consumersunion.org

12. Other Advocacy Groups • Major Appliance Consumer Action Program • Consumer assistance panel • Helps consumer solve problems with large appliances such as washers, stoves, and freezers. • Radio and Television • Using the “power of the press”

13. Federal Agencies • Consumer information Center in Pueblo, Colorado. • www.pueblo.gsa.gov • Offer booklets that give advice to help consumers decide what and where to buy. • Federal Trade Commission (FTC) • Enforces laws about business practices • www.ftc.gov

14. U.S. Department of Agriculture (USDA) • Inspects foods such as meats and gives them grade labels that indicate the level of quality. • www.USDA.gov • The Food and Drug Administration (FDA) • Tests and approves all drugs before they can be offered to consumers. • www.fda.gov

15. The National Highway Traffic Safety Administration • Can order automakers to recall or take back and repair or replace cars with defective parts.

16. State Agencies • Each state has a consumer affairs division • Usually handled by the Attorney General’s office • State governments work to prevent unfair practices such as false advertising. • States have laws about credit card interest rates, and other consumer services.

17. Public Utilities • Public utilities are legal monopolies or companies that are allowed to operate without competition • A state public utilities commission regulates the rates charged by electric, gas, and water companies

18. Licenses • To prevent people from practicing occupations they are not qualified to do, states issue licenses, or legal permits to conduct business. • Doctors • Teachers • Roofers • Hair stylists • Architects • To get a license, a person usually needs special training and must pass a test.

19. Chapter 24 Book Work Fast Review • Page 387 #’s 1-2 • Page 389 #’s 1-2 • Page 391 #’s 1-3 • Page 393 #’s 1-2 Using Business Key Words • Page 394 #’s 1-9